Radical Tax Reform: Death to the Tax Code? Or Much Ado About Nothing?

Most, Bruce W.
April 1996
Journal of Financial Planning;Apr96, Vol. 9 Issue 2, p36
Academic Journal
This article focuses on major tax reforms that have become a campaign banner of the 1996 presidential election year. In view of this tax reform frenzy, one might expect financial planners to be hunched over their computer keyboards late at night feverishly rejiggering the asset allocation models of their client's portfolios in anticipation of a whole new investment landscape. But one would be wrong if he thought that. Surely they're perusing comparisons of the various tax proposals--the flat tax, the national sales tax, the USA tax, and so on. And a few are tinkering here and there, scooping up undervalued municipal bonds or advising clients to hold off, when reasonable, selling assets with large capital gains. But not much beyond that. Most of the planners are no more confident than their clients that any fundamental tax reform will take place soon, if at all. The general skepticism among planners and their clients is not to say they aren't intrigued with some of the tax reform proposals, or that the current Kafkaesque tax code couldn't use a little simplification.


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